Synergy Services Inc.

“The finance director gathers information to prepare the form 990 tax return. This information is then given to an independent cpa firm to prepare the form 990 tax return. The independent cpa firm provides the finance director with a draft of the form 990. The audit committee then reviews the form 990 and provides the cpa firm with a list of comments and suggestions. Once the audit committee and the cpa firm approve the form 990, then the form 990 is presented to the governing board for a final review prior to filing the tax return.”

“At the time of hire or election (in the case of directors) and annually thereafter, the officers, directors, and key employees shall provide the applicable conflict of interest disclosures which shall be completed to identify any relationships, positions, or circumstances in which it is believed a conflict may arise. If a conflict arises, the officer or director abstains from the vote of the conflicted position. Key employees are not allowed to vote on organization's governing policies. Annual monitoring and review procedures shall be part of the organization's compliance plan. An appropriate report shall be submitted to the executive board concerning any interest disclosed.”

“On an annual basis, the board of directors require human resources to perform a survey in the local area for other not-for-profit organizations to compare salaries to the executive director's compensation.”

“The executive director reviews and determines other officer and key employee compensation on an annual basis.”

“The organization's governing documents, conflict of interest policy, and finanical statements are available to the public upon request, by walk-in, or on website.”

“During July 2010, Synergy created two new entities, Synergy Real Estate Holdings, Inc. (SREH), a 501(c)2 real estate holding company and Synergy Financial Support Corporation (SFSC) a 501(c)3, both of which are operated exclusively for the benefit of Synergy. The entities were created in conjunction with the New Market Tax Credit transaction discussed below. A separate IRS Form 990 was prepared for each entity; therefore the three forms must be reviewed in conjunction with one another for an accurate picture of Synergy Services, Inc. as a whole. New Market Tax Credit Transaction On July 14, 2010, Synergy Services Inc. (Synergy) and it's newly formed supporting organizations, Synergy Real Estate Holdings, Inc. (Synergy Real Estate) and Synergy Financial Support Corporation (Synergy Financial Support), entered into a transaction which generated tax credits called New Market Tax Credits (NMTCs) under IRC Section 45D. In the transaction, Synergy Real Estate received loans totaling $6,860,000 from an investment account funded primarily by Synergy's other support organization, Synergy Financial Support Corporation. Synergy will have the option to acquire all membership rights of the investment fund which holds the loans and forgive the related debt at the end of the 7 year NMTC compliance period. Synergy Real Estate used a majority of these proceeds to purchase the Youth Resiliency Center and Synergy House facilities from Synergy which significantly reduced the amount of fixed assets on Synergy's books (See 990 Part X 10a) and increased the assets of Synergy Real Estate. Synergy continues to utilize the youth campus facilities in the same manner as prior to the transaction. Synergy transferred $5,289,918 of the $6,500,000 purchase price received to Synergy Financial Support (See the reconciliation of net assets 990 Part XI, Line 5 and reconciliation of change in net assets Schedule D Part XI Line 8), which funded the investment account as noted above.”

“FAMILY CARE THERAPY (CLINICAL SERVICES): SYNERGY'S CLIENTS REPRESENT A BROAD CROSS-SECTION OF THE POPULATION SPANNING GENDER, AGE, RACE AND SIX COUNTY LINES IN KANSAS AND MISSOURI. MOST OFTEN, CLIENTS HAVE ANNUAL FAMILY INCOMES OF LESS THAN $25,000, MAKING IT DIFFICULT FOR THEM TO ACCESS THE VARIETY OF SERVICES THEY NEED THROUGH TRADITIONAL MEANS. WE PROVIDE THESE SERVICES THAT ARE SO CRITICAL TO THE WELL-BEING OF THE FAMILY AND COMMUNITY ON A SLIDING SCALE AND NO ONE IS TURNED AWAY DUE TO THEIR ABILITY TO PAY. WHEN A FAMILY DOES NOT FUNCTION WELL, IT THREATENS THE WELL-BEING AND FUTURE SUCCESS OF EACH OF ITS MEMBERS. SYNERGY'S PROFESSIONAL THERAPISTS CONFRONT THE CHALLENGES OF FAMILY DYSFUNCTION EVERYDAY. WE OFFER INDIVIDUAL, GROUP AND FAMILY COUNSELING ON A STAND-ALONE BASIS AND AS A PART OF OUR RESIDENTIAL PROGRAMS. THERAPEUTIC SERVICES ARE ALSO PROVIDED IN CONJUNCTION WITH PROGRAMS, LIKE OUR TEEN PARENT SUPPORT PROGRAM, OFFERING THERAPY THAT IS BENEFICIAL TO PARTICIPANTS AS WELL AS TO THEIR CHILDREN. CHILDREN'S ADVOCACY CENTER PROVIDES A MULTI-DISCIPLINARY, CHILD-FRIENDLY, COMMUNITY-BASED ENVIRONMENT IN WHICH TO CONDUCT FORENSIC INTERVIEWING, ASSESSMENT, REFERRAL AND ADVOCACY FOR CHILDREN WHO DISCLOSE SEXUAL OR SEVERE PHYSICAL ABUSE. PERSONS SERVED: 3,765 with 17,249 hours of therapy PROGRAM EXPENSES: $1,563,986 PROGRAM REVENUES: $ 109,585”

“Residential program services: residential program services includes synergy house, women's center, children's center, transitional living, permanent housing for homeless and unattached youth, and hotline phone calls. Helping children heal from the trauma of abuse and violence is one of the most important investments we make as a community. It is key to breaking the cycle of violence that is often generational. Synergy provides a safe, therapeutic environment for children birth to 22 to begin the healing process and go on to lead healthy, productive lives. On any given night in greater kansas city, there are 2,000 "unattached" teens living on the streets, sleeping in cars, or "couch surfing" with friends because they do not have a place to live. Our youth resiliency center, opened in 2009, brings together under one roof comprehensive services youth need to heal from the trauma they have experienced and build a brighter future for themselves. One in three women will experience relationship violence in her lifetime. Synergy provides the safety and support necessary for abused women and their children to move beyond their abusive relationship. Persons served: 23,798 bednights in residential & 5,390 hotline calls program expenses: $3,186,557 program revenues: $ 227,170”

“Other program services: synergy services, inc. Is a lifeline for greater kansas city's families and individuals in crisis. For 40 years, the organization has reached out to victims of violence, abuse and neglect and provided crisis intervention, shelter, counseling, mentoring, court servies, prevention education and advocacy. Through a series of mergers of smaller agencies, synergy grew to become one the kansas city's largest and most comprehensive social service agencies, providing a blend of programs and projects to overcome domestic violence, child abuse, bullying, family disfunction and adolescent homelessness. Located largely in the northland, the organization services clients of all ages from across the metropolitan area. True to its name, synergy services does provide synergy...the integrated work of the organization is stronger and more complete than any of the organization's component programs could be on their own. Committed to quality care, synergy services, inc. Is accreditated by the council on accreditation (coa), licensed by the state of missouri, accredited by the national children's alliance, certified by the united way, and approved by department of health and human services, the missouri department of mental health. The organization is a member of the missouri coalition against domestic and sexual violence, and the national network for youth. Other program services include a thrift store. Synergy in style thrift store: serving synergy programs, clients and the northland with quality new and used merchandise. All proceeds are used for agency and client support. Program expenses: $375,189 program revenues: $ 19,762”

“Transfers to affiliate*** $ 345,950 ***see discussion of new market tax credit transaction on schedule o”